Abstract

The study explores challenges associated with, and the feasibility of, financial assurance requirements for liabilities arising under U.S. environmental statutes, with a particular emphasis on liabilities associated with natural resource damages (NRDs). The overlap between federal NRD liability and financial assurance arises in the context of two financial assurance rules: one for waterborne vessels that carry oil or hazardous substances, and one for offshore facilities used for oil exploration, drilling, production, or transport. The report addresses the rules’ history, their role as a complement to other forms of environmental regulation, and their impact on the regulated community and providers of coverage. Despite numerous difficulties and over objections from the regulated community, the rules have been implemented with success and without significant shortfalls in coverage availability.

Researchers

Related Content

The offshore oil spill in the Gulf of Mexico has brought oil-related energy, liability, and regulatory issues back to the forefront. RFF's strong legacy of research and public events on these topics can provide context for the ongoing situation and analysis of the policy implications.
In August 2010, the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling asked RFF to conduct several studies that would help inform the Commission’s investigations and recommendations.

By Shanjun Li, Han Kyul Yoo, and Jhih-Shyang Shih. Americans produce about 4.4 pounds of waste per capita every day, according to the latest information from the US Environmental Protection Agency (EPA).